Penang undersea tunnel project: Probe to focus on RM305m fee

(File pix) On going sea reclamation work at Persiaran Gurney, Georgetown. Sources close to the investigation said another aspect being looked into was the feasibility studies and detailed design of the project worth a whopping RM305 million. Pix by Shahnaz Fazlie Shahrizal

KUALA LUMPUR: THE Malaysian Anti-Corruption Commission’s investigation into the proposed Penang undersea tunnel project will focus on the RM305 million paid to the project’s consultant using two plots of land near Tanjung Tokong.

Sources close to the investigation informed Berita Harian (BH) this was because when the two plots of land, measuring 1.49ha and 0.8ha, are developed they could fetch up to RM15 billion.

The source also said another aspect being looked into was the feasibility studies and detailed design of the project worth a whopping RM305 million.

“Questions arise on the total cost to the state government for the studies and its method of payment,” the source added.

Queries about the mega project and payments made by the state government had previously been raised at the Penang state assembly sitting by PKR’s Kebun Bunga representative Cheah Kah Peng in November 2016.

Cheah had then queried the state government about the pros and cons, costs and details of the privatised mega reclamation and land swap projects.

He said the state assemblymen were then informed that the tunnel’s “feasibility report” and the required “environmental impact report” had not been completed, but yet the government had agreed to pay a large payment of RM138,971,572 for the feasibility report and design, and that the sum was approved by the relevant government departments years ago.

He said the whole feasibility report was worth RM305 million and was mainly to be paid with land swaps, which involved exchanges of two lots at Tanjung Pinang and Tanjung Tokong.

He later posted that questions had been raised by few state assemblymen on the land swaps and reclamations, and that they were unsure how the feasibility tests justified such a large payment and in exchange for the two lots of reclaimed land.

Another source told BH that the two plots were eventually going to be developed into luxury condominiums, and had already been transferred to the consultancy company based on a value of RM280 million.

It is learnt that the state government had also identified another lot worth RM25 million which is to be used as payment to the same company as full settlement of the RM305 million.